Linked by Thom Holwerda on Wed 18th Mar 2009 11:48 UTC, submitted by PLan
In the News In a move that would certainly shake up the computer industry quite a bit, IBM is reportedly in talks with Sun Microsystems about the possibility of IBM acquiring Sun. Sun is going through hard times at the moment, and has been actively looking for someone to be acquired by.
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Comment by kaiwai
by kaiwai on Thu 19th Mar 2009 01:08 UTC
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According to this:

The company IBM is currently negotiating a deal in which it will buy Sun Microsystems for the hefty sum of US$7 billion. The deal will be a very important one, and according to The NY Times could result in an anti-trust challenge.

A combination of these two companies would create a new one, with an immense amount of money being spent on research and development. As you may know, IBM and Sun are both companies that invest heavily into developing new technologies, and if they merged, they would have a budget of around about $9 billion a year on R&D alone.

According to the NY Times, Sun's stock has gone up by $4.10 (82%) a share since the news was announced, and is expected to hit around $10 per share. This deal would be the largest in IBM's history, the largest before this one was $4.9B for the company Cognos. Also, "Together, I.B.M. and Sun would have about 65 percent of the market for server computers running the Unix operating system and 42 percent of the total server market, measured in the dollar value of the market.

This would be a huge event in the history of technology, so be sure to keep a look out for more news on this as it develops.

All I can say is that it will be an information technology powerhouse that would make Microsoft squirm in its metaphorical seat.

Edited 2009-03-19 01:10 UTC

Reply Score: 2

RE: Comment by kaiwai
by Hiev on Thu 19th Mar 2009 01:13 in reply to "Comment by kaiwai"
Hiev Member since:

IMHO this deal would benefit MS instead of scare him.

Reply Parent Score: 2

RE[2]: Comment by kaiwai
by kaiwai on Thu 19th Mar 2009 01:38 in reply to "RE: Comment by kaiwai"
kaiwai Member since:

IMHO this deal would benefit MS instead of scare him.

I assume you mean from the point of view that as an organisation becomes larger and more bureaucratic that it becomes more difficult to respond to changes; its like turning around a massive boat, it takes a lot of time. By the time the boat has changed directions Microsoft might already have 80% of the market place.

There is a risk of that but I have a feeling that there are some great ideas in Sun that simply need the financing required and IBM has that money to turn many of these good ideas into real products as part of their larger strategy.

Reply Parent Score: 2